Ebook Download Capitalism, Socialism, and Democracy: Third Edition (Harper Perennial Modern Thought), by Joseph A. Schumpeter

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Capitalism, Socialism, and Democracy: Third Edition (Harper Perennial Modern Thought), by Joseph A. Schumpeter

Capitalism, Socialism, and Democracy: Third Edition (Harper Perennial Modern Thought), by Joseph A. Schumpeter


Capitalism, Socialism, and Democracy: Third Edition (Harper Perennial Modern Thought), by Joseph A. Schumpeter


Ebook Download Capitalism, Socialism, and Democracy: Third Edition (Harper Perennial Modern Thought), by Joseph A. Schumpeter

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Capitalism, Socialism, and Democracy: Third Edition (Harper Perennial Modern Thought), by Joseph A. Schumpeter

Review

“The 20th century’s foremost economist.” (Steve Forbes, Forbes)“The most influential economist of the 20th century.” (Peter Drucker, Fortune)“The great economist Joseph Schumpeter highlighted the role of innovation in powering the rise of new industries, the creative destruction of existing ones, and the growth in prosperity of economies.” (Richard Florida, Atlantic)“Schumpeter gave us stunning insights into how the world really works. We are now living, it is said, in the Age of Schumpeter. . . . Schumpeter was a powerful prophet, and he now offers dazzling insights into everything from the rise of Wal-Mart to prosperity’s discontents.” (Robert J. Samuelson, Newsweek)“The greatest defense of capitalist, European civilization ever penned. . . . Schumpeter did more than anyone to persuade American leaders to preserve the capitalist system” (American Conservative)“Schumpeter may well be the most important economist of the 21st century.” (J. Bradford DeLong, Chronicle of Higher Education)“Schumpeter was the most farsighted of twentieth-century economists. His focus on capitalism and creative destruction made him the prophet of globalization.” (The Nation)

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About the Author

Joseph A. Schumpeter (1883-1950) served as Austria's first finance minister, made and lost a fortune as an investment banker, and taught economics for many years at Harvard. Capitalism, Socialism and Democracy is his best-known work.

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Product details

Series: Harper Perennial Modern Thought

Paperback: 466 pages

Publisher: Harper Perennial Modern Classics; unknown edition (November 4, 2008)

Language: English

ISBN-10: 0061561614

ISBN-13: 978-0061561610

Product Dimensions:

5 x 1.2 x 8 inches

Shipping Weight: 1.3 pounds (View shipping rates and policies)

Average Customer Review:

3.6 out of 5 stars

54 customer reviews

Amazon Best Sellers Rank:

#27,033 in Books (See Top 100 in Books)

This is a great introduction into the schools of thought. Should be required reading in American High Schools - but that's probably asking too much.I have to amend my review of Amazon. I've done business with them for many, many years. They were actually the first company I ever ordered from online. Sure, over the years there's been hiccups but when you order 50-100 times a year, anyone is bound to mess up occasionally. I'm going to leave my original comments below, but be assured I still go to Amazon before any other online retailer. Check that - before any retailer, online or local. Service is overall exemplary and consistent. On each problem order I've had, they promptly fixed it - when I followed protocol. I actually don't remember what I was so ticked about here, but I do know they fixed the issue. (revised 11/30/11)On another note, this is among the last items I'll order from Amazon. After ten years of doing business with them, I just can't abide the lack of customer service they provide. They are much more geared to just provide automated orders than help customers. They depend on new customers and the fact that most people expect crappy service, so that's what they provide. I've cancelled all open orders with them.

The book was originally written during the Great Depression to offer a peek into the future as seen by a widely admired economist. It is heavy going, not light reading, but does provide an excellent analysis of the perils to democracy if capitalism and socialism fail to properly address economic problems. The author warns that government interference in the market place is not the correct answer. His most interesting thesis seems to me to be that unfettered capitalism will fail due to its very economic success because critics will fail to remember the basic tenets that led to that success. Schumpeter gives us a good look at recent U.S. economic history but critics will not like what he implies.

This book is a complex and systematic sociological discussion of the evolution of industrial economies in the pre-1945 era. It also includes a summary of Karl Marx's theories, to help the reader follow the contrasts that Schumpeter draws between his observations and Marx's. It concludes with a number of sections containing Schumpeter's views on contemporary political economy from the perspective of the dates of the book's three editions: 1942, 1947, and 1949.It's written conversationally, with enough grace to draw the reader along in a complex argument sustained through a number of chapters. Nonetheless, the author's self-indulgence also comes through: he pontificates and where he has nothing to say he says that a long book does not afford enough space to contain his argument. That's okay, I wouldn't have wanted it to be longer than it is.This style works when you're right, and Schumpeter was magnificently right about one of those key facts that everyone can see instantly once attention is drawn to it: that the long-term growth that transforms living standards does not and cannot proceed by increasing the amounts of things produced, but instead must result from the introduction of new products and processes. Schumpeter connects product innovation with the efforts of individuals but concedes that it can be systematized also, which should have comforted him as he could see that the enterprise sector was becoming bureaucratized.Schumpeter's second outstanding observation is surprisingly less often remarked: he laid out what later came to be called the "New Institutional Economics," showing why taking into account that private enterprise is essentially only semi-competitive, based on uniqueness of product innovation among other things, changes completely the normative evaluation of market structure and public policy. Mainstream economics taught Chamberlin-Robinson "monopolistic competition" as an oddity but otherwise ignored this point for decades, entertaining itself by re-doing outmoded Marshallian analysis using the mathematics of perfect gases. (I know this sounds strange, but you could look it up.)Schumpeter also has intriguing observations on democracy, although by not measuring his thoughts against his contemporaries' he doesn't help us see where he is contributing. He characterizes democracy as being essentially competitive rather than ethical, and in chapter XXIII he lays out five reasonable "Conditions for Success of the Democratic Method." One might wonder whether any of them obtain in the U.S. at present.It is on socialism where I and other readers feel he stumbles. His sarcasm about centralized, comprehensive socialist economic planning may be well founded in terms of feasibility, but it's unworthy rhetorically -- although the fact that economists went on trying to lay the bases of comprehensive planning (Lange-Lerner; Arrow-Debreu) may suggest that there was a reason for Schumpeter's frustration.Like his treatment of socialism, Schumpeter's supposed prediction of capitalism's demise is largely rhetorical. First, Schumpeter defines capitalism as what we might almost call "Robber Baron" capitalism, whose primordially entrepreneurial firms he indeed predicts (or post-dicts) will be socialized, but through the stock market rather than by Bolsheviks. Second, his argument about the end of private ownership in general is not a prediction but rather a provocation: a warning about what might happen if then-current trends persisted.With his concern about comprehensive public ownership, Schumpeter failed to take seriously the mixed economy. Since Schumpeter's time, technical economic analysis has helped identify the specific sectors, within a private-ownership economy, that may need "socializing" in some sense (think basic medical services), based on concepts like public goods and incentive compatibilities. Schumpeter missed that boat altogether.

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